PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1916540
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1916540
The global urea market remains a critical pillar of agricultural productivity and industrial development worldwide. As per the report timeline strictly followed, the global urea market was valued at USD 79.73 billion in 2025. The market is projected to decline slightly to USD 76.58 billion in 2026, before expanding to USD 104.88 billion by 2034, registering a CAGR of 3.90% during the forecast period. Asia Pacific dominated the global urea market with a 61% market share in 2025, driven by large-scale agricultural consumption, population growth, and strong domestic production capacity.
Urea (carbamide) is produced industrially by reacting ammonia with carbon dioxide under high pressure and temperature, forming ammonium carbamate, which is subsequently dehydrated to yield solid urea. Due to its high nitrogen content of approximately 46%, urea is widely used as a nitrogen fertilizer. Beyond agriculture, urea finds extensive applications in animal feed, resins, adhesives, pharmaceuticals, plastics, cosmetics, and environmental control systems such as diesel exhaust fluid (DEF/AdBlue) for reducing nitrogen oxide emissions.
IMPACT OF COVID-19
During the COVID-19 pandemic, global trade of carbamide and related products faced severe disruptions due to lockdowns and logistical constraints. Industrial applications, including resins and chemical manufacturing, were strongly affected. However, agriculture and animal feed sectors demonstrated resilience, as food production remained essential. By 2021, major economies such as the U.S., China, and India resumed industrial activity, enabling gradual recovery of the urea market.
UREA MARKET TRENDS
A major trend shaping the market is technological advancement in manufacturing processes, particularly the development of low-carbon and blue urea. These technologies use renewable energy, water electrolysis, and decentralized production units to reduce emissions associated with traditional manufacturing. Such innovations lower transportation costs, minimize contaminants, and align with sustainability targets, creating long-term growth opportunities for the global urea market.
MARKET DYNAMICS
Market Drivers
The rising demand from agriculture and animal feed remains the primary growth driver. Urea is essential for improving crop yields by supplying nitrogen required for plant growth. Rapid population growth, declining soil fertility, and limited arable land are increasing reliance on nitrogen fertilizers. In animal nutrition, urea serves as a cost-effective protein source for ruminants, particularly where grazing land is limited and protein-rich feed grains are expensive.
Another key driver is the expanding industrial application base. Urea is widely used in chemical synthesis, aviation fuels, lubricants, resins, pharmaceuticals, cosmetics, and automotive emission control systems. Its role in DEF/AdBlue systems is particularly significant as governments enforce stricter emission standards for diesel vehicles.
Market Restraints
Rising awareness of organic and chemical-free farming is restraining market growth. Increasing fertilizer prices due to volatile oil and gas costs raise agricultural input expenses. Environmental concerns related to ammonia emissions, greenhouse gases, and water pollution have prompted governments to promote organic farming and natural nutrient management practices, limiting synthetic fertilizer usage in some regions.
Market Opportunities
Government initiatives and subsidies present major growth opportunities. Countries such as India provide extensive fertilizer subsidies to ensure affordability and food security, stabilizing demand. Strategic investments in agricultural productivity and rural development continue to support long-term market expansion.
Market Challenges
Environmental regulations and geopolitical risks pose significant challenges. Restrictions on nitrogen usage, carbon taxation, and emission limits increase compliance costs. Additionally, trade protectionism, export restrictions, and geopolitical conflicts disrupt global supply chains, causing price volatility and uncertainty in fertilizer availability.
SEGMENTATION ANALYSIS
By grade, the fertilizer grade segment dominated the market with a 71.57% share in 2026, driven by extensive agricultural use. Feed grade demand is increasing due to rising animal husbandry, while technical grade urea is growing fastest due to expanding industrial applications.
By application, agriculture held the largest market share in 2026, supported by large-scale fertilizer use to enhance crop yields. Animal feed demand is growing steadily, while chemical synthesis and other industrial applications are projected to expand rapidly due to diverse end-use industries.
REGIONAL OUTLOOK
Asia Pacific led the global market, supported by China and India's high production and consumption levels. Government subsidies and population-driven food demand reinforce regional dominance.
North America shows steady growth driven by agriculture and DEF usage, with the U.S. market projected to reach USD 7.35 billion by 2026.
Europe relies heavily on imports and is driven by emission control regulations.
Latin America presents manufacturing expansion opportunities, while the Middle East & Africa benefit from raw material availability and large-scale production capacity.
COMPETITIVE LANDSCAPE
The market is moderately fragmented, with key players focusing on capacity expansion and sustainability. Major companies include SABIC, Yara International ASA, Nutrien AG, CF Industries Holdings, and EuroChem. Strategic investments in low-carbon ammonia, blue urea, and sustainable agriculture solutions are reshaping competition.
CONCLUSION
The global urea market is set to expand from USD 79.73 billion in 2025 to USD 104.88 billion by 2034, driven by rising food demand, agricultural dependence, industrial diversification, and government support. While environmental regulations and alternative farming practices pose challenges, continued innovation, capacity expansion, and sustainability-focused production ensure a stable and positive long-term outlook for the global urea market.
Segmentation By Grade
By Application
By Region